Hello,
I entered my Section 1256 contracts and straddles profit in the federal form as ususal.
Then I started on the MA state form - non resident state form. These profits are not MA source income - we don't live in MA and didn't earn the money there.
There is no option to Exclude these profits in Turbotax (desktop deluxe) as far as I can see. You can exclude interest, dividends, capital gains and stock sales, but not Section 1256 transactions. So, MA is taxing me on the profit earned.
How do I exclude the income from taxation by MA ?
Let me clarify> On our 1040 Schedule D, we have profits on both Schedule D, Part I, line 4
and Schedule D, Part II, line 11. These are section 1256 contracts reported on federal form 6781.
We are filing as non-residents in MA, but when we step through the interview, we can exclude stock transactions from Schedule D from MA taxation, but there is no option to exclude these contracts from Schedule D Part 1 line 4, and Schedule D Part II line 11.
Turbotax, do you need to amend your MA state program? It seems this was left out.